Tuesday, July 23, 2013

Watch Bond Market, Not Bank Lending or Velocity

March 19, 2010 by · Leave a Comment 

A few weeks ago we wrote about the true cause of hyperinflation, which is a major break or failure in the bond market. It has nothing to do with demand, bank lending or the velocity of money as many have suggested. It is a confidence issue. It is not a rise in inflationary expectations but [...]

Is the Bond Market Screaming Inflation?

February 12, 2010 by · Leave a Comment 

Uh oh… Did anyone catch the 30 year bond auction yesterday? If not, take a look (warning, this is not for the faint of heart): My Take: Folks this is ugly. A bid to cover of 2.36 is god awful. Anything below a 2.0 BTC is considered to be a failed auction. We came real [...]

A Deflation Story

October 10, 2009 by · Leave a Comment 

The Daily Reckoning “It was at Rome, on the 15th of October, 1764, as I sat musing amidst the ruins of the Capitol, while the barefooted friars were singing vespers in the Temple of Jupiter, that the idea of writing the decline and fall of the city first started to my mind.” – Edward Gibbon [...]

What Causes a Depression?

September 29, 2009 by · Leave a Comment 

The Daily Reckoning It is a gray morning here in London. We sit in the building with the golden balls, look out the window, and wonder… …how does it all work? We’re doing some serious thinking this week. What is it that actually causes a depression? A stock market collapse? Or too much debt? How [...]

In Search of a One-Armed Economist

September 29, 2009 by · Leave a Comment 

The Daily Reckoning How are we doing? Our Trade of the Decade, that is? Yesterday, gold took a big dip down – minus $15. It closed under the $1,000 level. Now we’ll find out if the Chinese are supporting it at $1,000…or not. If so, it should soon bounce back. If not…well, who knows? But [...]

LA Times cites Treasury’s ‘manipulation’ of bond market

May 22, 2009 by · Leave a Comment 

Good thing the world has Jon Nadler at Kitco and Philip Klapwijk at GFMS to provide assurances that such manipulation could never happen in the gold market. * * * By Tom Petruno, Los Angeles Times This week couldn’t end fast enough for the Treasury bond market or the dollar, both of which were hammered again [...]